Global Business Management: Australian Tourism Product Market Analysis

This report provides a comprehensive analysis of the Shangri-La Hotel in Sydney, Australia, focusing on its global business management strategies. The report examines the introduction of the "Chi the Spa" product, its market impact, and sales performance based on the 5 P's (Passion, Purpose, Planning, Patience, and Perseverance). The analysis considers the competitive landscape, the increasing responsiveness of customers, and the challenges faced in the spa industry. Furthermore, the report offers recommendations to grow market share and profitability, including product innovation, expanding service availability, and implementing customer loyalty programs. The report highlights the importance of adapting to customer needs and maintaining a long-term perspective in the competitive Australian tourism market.

Running head: GLOBAL BUSINESS MANAGEMENT
Global business management
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Table of Contents
Tourism Product in Australia...........................................................................................................3
Analysis of the Market Impact........................................................................................................3
Sales Performance of the Product based on 5 P’s............................................................................4
Recommendations to grow market share and profitability..............................................................5
Reference.........................................................................................................................................6

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Tourism Product in Australia
The following report has discussed about Shangri La hotel in Sydney, Australia. The
hotel is one of the most luxury Hotels of Sydney and stands right beside the iconic Sydney
Harbor and provides the guests with the non parallel view of the Sydney Opera House along with
the harbor Bridge (shangri-la.com, 2018). The hotel industry has been one of the most
competitive industries in the 21st century. This provides enough scope for the management of
the hotel to enhance consumer royalty Antonyms competitiveness in the industry as well as
ensure business continuity. The management of Shangri-La hotels have came up with a unique
product to enable Global marketing of the brand and develop universal standards in the
hospitality market of Australia. The main product that was introduced by the management was
Chi the spa. The Spa in the hotel offers treatments and services that were inspired by traditional
Asian healing philosophies. The guests in the hotel can choice from a range of treatments such as
body messages meditation movement hydrotherapy stretching and other kinds of physical
exercises. The management of the spa has recruited a number of professional makeup base and
experts in Spa treatment who can help the guests with the regular therapies. The product which
was introduced in the last part of 2014 has attracted a large number of people in the hotel. The
presence of a large number of foreign tourists in Australia is especially suitable for the success of
the following product as because the tourist generally needs therapies and meditations after long
and hectic journeys.
Analysis of the Market Impact
The opening of the Spa in Shangri La hotel in Sydney can be considered to be due to the
increasing responsiveness of the customers of the hotel. The opening of the Spa facility enables

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the management of the hotel to face the competitive necessity of the future and thus necessitates
the need to have such modern facilities in luxury Hotels (Tseng et al., 2018). The Spa is
following the concept of Wellness and offers a range of luxury and possibility for light exercise.
The decision to build the Spa instead of another drinks bar is quite justified because the
competition within the bars is quite fiercer than that of the spa. Apart from this the presence of
another luxurious bar is also help to facilitate the decision of the management. The strategy of
the bar is to create a distinctive competitive advantage by providing superior quality and
responsiveness to different customers of the hotel (Albayrak Caber & Öz, 2017). The
management of the hotel must ensure the fact that the customers are able to buy their products so
that the spa can sustain itself in the future. According to, Lo, Wu & Tsai (2015) the Spa industry
is characterized by large sum of investment and use payroll caused the creation of challenge for
finding different possibilities of earning revenue through less labor is one of the very needs of
the industry. At present the product sales of the spa has not reached the estimated goals of the
first five years. However, according to the management there slowly yet steadily moving forward
towards the goal of achieving a 25% market share within the first few years.
Sales Performance of the Product based on 5 P’s
Passion- Before the start of the Spa services in the hotel, the management of the hotel conducted
a market study and a survey over its customers on whether they are satisfied with their
services and if there is any additional needs (Sun, 2014). The passion to provide the
customers with a luxurious service resulted in the establishment of the new Spa in the
hotel.

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Purpose- The main purpose of the Spa is to help the tourists to relax and meditate and also
provide them with the best Hospitality Services. The purpose of the management is to
increase the sales of the product and not just to add just another luxury brand under its
belt.
Planning- The planning for the following product was done after high level of meeting and
discussions with the top level management and the shareholders. The plan was implemented only
after approval from the shareholders and the management of the company.
Patience- The management of the company has prepared the five year plan for the new product.
As they believe that the organization will need at least 5 years to gain a competitive advantage in
the market.
Perseverance- It will take a long time to gain success in the highly competitive tourism market
of Australia. The new products offered by the management of Shangri-La hotels will the take a
minimum of 5 to 6 years to be competitive enough to challenge the other business organizations
providing similar services in the market.
Recommendations to grow market share and profitability
The market share of the new product offered by the management of Shangri –La Hotels
can be improved by means of innovation in the products offered by the company. It will be
helpful for the company to keep a thorough tab on the needs and demands of the customers so
that the company can change their needs accordingly. Secondly the company must make the spa
services available also for the customers apart from the boarders of the hotel. Making the SPA
services available to the other people will help increase the revenue of the product. Lastly there
must be some discount coupons or premier membership cards which can help to increase the

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loyalty of the customers and ultimately help in retaining the customers and ensuring
sustainability of the product.
Reference
Albayrak, T., Caber, M., & Öz, E. K. (2017). Assessing Recreational Activities’ Service Quality
in Hotels: An Examination of Animation and Spa & Wellness Services. Journal of
Quality Assurance in Hospitality & Tourism, 18(2), 218-234.
Hotel in Sydney - Luxury 5 Star | Shangri-La Hotel, Sydney. (2018). Retrieved from
http://www.shangri-la.com/sydney/shangrila/
Lo, A., Wu, C., & Tsai, H. (2015). The impact of service quality on positive consumption
emotions in resort and hotel spa experiences. Journal of Hospitality Marketing &
Management, 24(2), 155-179.
Sun, J. (2014). How risky are services? An empirical investigation on the antecedents and
consequences of perceived risk for hotel service. International Journal of Hospitality
Management, 37, 171-179.
Tseng, M. L., Lin, Y. H., Lim, M. K., & Teehankee, B. L. (2015). Using a hybrid method to
evaluate service innovation in the hotel industry. Applied Soft Computing, 28, 411-421.